GENERAL PRICING APPROACHES● COST-BASED- COST-PLUS PRICING

3. General pricing approaches● Cost-based- Cost-plus pricing: Adding a standard mark-up to the cost of the product. - Pros: Easy to calculate- Cons: + Only works if expected sales is achieved+ Ignore competition & customers demand● Value-based - Value-based pricing: Setting price based on buyers’ perceptions of productvalues rather than on cost.● Competition-based- Setting price based largely on following competitors’ prices rather than oncompany costs or demand.